While foreclosure is commonly known as a process wherein a bank/lender repossesses a property in lieu of a mortgage default, foreclosure can also be carried out by government agencies to recover unpaid taxes and/or fines from the owner of the property.
The sale of these properties is entrusted to the Dept. of Housing and Urban Development and these properties ate often referred to as HUD foreclosures.
In order to buy an HUD foreclosure, you need to get in touch with a real estate agent who has been approved by the Dept. of Housing and Urban Development. This is because these properties are sold though a process wherein buyers are required to place sealed bids though these approved agents.
Besides taking your bid forward, your agent can also help you in looking for a suitable property and arranging property inspections. You an also opt to search for the property yourself and can get your agent to fix up an appointment for the inspection.
Inspecting these properties is very important and should play a key role in your offer (bid). Ideally, you should employ the services of a professional as he/she would know exactly what to look for and where.
Once the initial bid period comes to a close, all the bids that are received are opened and the highest bidder normally gets the property. In case of residential property, preference is given to the bidder who intends to live in the property.
If you expect to get a good deal in buying tax foreclosure properties your search and inspections should ideally be thorough. There are many options available if you are willing to spend some time and effort in exploring them.
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